In conversation with Zee Business Managing Editor Anil Singhvi, independent market expert Mehraboon Irani shared his views on what investors should do amid the current market volatility and emerging trends.
What should investors do after the recent 10% rally?
According to Irani, after a 10 per cent rally from recent lows, the market is currently in a phase of indecision and is seeking direction.
However, he said that such periods of volatility often present long-term investment opportunities.
“History shows that panic creates the best opportunities, but most investors fail to act due to fear,” he said.
Citing past global events like the COVID-19 crash and the 2008 financial crisis, Irani stressed that markets eventually recover and reward those who remain patient and strategic during negative phases.
What are the three pillars of stock markets?
Similar to the pillars of democracy—legislature, executive, and judiciary—Irani outlined three key drivers of market movement.
According to him, fundamentals, liquidity, and sentiment are the three pillars of the stock market.
He added that strong mutual fund inflows, the RBI’s liquidity support, and improved investor sentiment are currently keeping the markets buoyant.
“India’s macroeconomic indicators—such as softening oil prices, controlled inflation, and supportive monetary policy—make it a compelling destination for global investors,” he noted.
Which stocks look underrated or overrated now?
“People often consider blue-chip stocks to be safe—but look at Hindustan Lever, Colgate, Reliance, Lupin, Infosys—what returns have they delivered in the last year or two?” Irani questioned.
He explained that investing in top companies alone is not enough; investors need to choose the right stocks.
“These may not be in the top 50 or even top 100, but if the valuation is low and there’s earnings potential, that’s where wealth is created,” he advised.
Which sectors to focus on?
Among the sectors to watch, Irani highlighted Banking and Financial Services (BFSI) and Oil Marketing Companies (OMCs), both of which are showing strong earnings momentum.
He also recommended focusing on domestically oriented sectors such as tourism, retail, and infrastructure, citing robust toll collections and trends in discretionary spending.
Any pocket to be cautious about?
On the downside, he expressed concern over IT companies due to weak global cues and disappointing earnings. He advised caution around export-heavy businesses that are sensitive to US demand.
What are the hidden gems in the current stock market trend?
Irani pointed to textiles and specialty chemicals as two under-the-radar sectors poised for a turnaround.
“These sectors have been ignored for years. When the cycle turns, quality companies in these areas can deliver exceptional returns,” he said.
Should investors be cautious about geopolitical risks?
While the nation stands out as a relatively resilient economy, Irani cautioned that global geopolitical tensions—such as conflicts in the Middle East and uncertainties around U.S. trade policy—could create near-term volatility.
“Investors must weigh these risks carefully while making portfolio decisions,” he advised.
